Note 5 - Restructuring Charges and Acquisition Costs

12 Months Ended

Sep. 28, 2013

Restructuring Charges And Acquisition Costs [Abstract]

Restructuring Charges And Acquisition Costs [Text Block]

(5) Restructuring Charges and Acquisition Costs

Restructuring charges. Subsequent to the Ivy Acquisition, the Company elected to consolidate certain of its welded wire reinforcement operations in order to reduce its operating costs, which involved the closure of facilities in Wilmington, Delaware and Houston, Texas. These actions were taken in response to the close proximity of Ivy’s facilities in Hazleton, Pennsylvania and Houston, Texas to the Company’s existing facilities in Wilmington, Delaware and Dayton, Texas. The Houston plant closure was completed in December 2010 and the Wilmington plant closure was completed in May 2011.

Following is a summary of the restructuring activities and associated costs that were incurred during 2012 and 2011:

(In thousands)	Severance and other employee separation costs			Asset impairment charges			Facility closure costs			Equipment relocation costs			Total
2012
Liability as of October 1, 2011	$	65		$	-		$	77		$	112		$	254
Restructuring charges, net		(40	)		(11	)		139			744			832
Cash payments		(25	)		-			(216	)		(856	)		(1,097	)
Non-cash charges		-			11			-			-			11
Liability as of September 29, 2012	$	-		$	-		$	-		$	-		$	-
2011
Liability as of October 2, 2010	$	-		$	-		$	-		$	-		$	-
Restructuring charges		2,263			3,825			2,606			1,233			9,927
Gain on sale of assets held for sale		-			-			(1,609	)		-			(1,609	)
Restructuring charges, net		2,263			3,825			997			1,233			8,318
Cash payments		(2,198	)		-			(920	)		(1,121	)		(4,239	)
Non-cash charges		-			(3,825	)		-			-			(3,825	)
Liability as of October 1, 2011	$	65		$	-		$	77		$	112		$	254

During 2012, all of the remaining restructuring liabilities were satisfied and the final proceeds were received from the sale of previously impaired machinery and equipment, which have been included in asset impairment charges.

Asset impairment charges include the proceeds received from the disposal of certain machinery and equipment that were previously impaired. Facility closure costs in 2011 include a $1.6 million gain from the sale of the Wilmington, Delaware facility, which had been closed in May 2011.

Acquisition costs. During 2011, the Company recorded $3.5 million of acquisition-related costs associated with the Ivy Acquisition for advisory, accounting, legal and other professional fees. The Company did not incur any additional acquisition costs related to the Ivy Acquisition in 2012.